BHP Group Ltd
ASX:BHP
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
Johnson & Johnson
NYSE:JNJ
|
US |
|
Berkshire Hathaway Inc
NYSE:BRK.A
|
US |
|
Bank of America Corp
NYSE:BAC
|
US |
|
Mastercard Inc
NYSE:MA
|
US |
|
UnitedHealth Group Inc
NYSE:UNH
|
US |
|
Exxon Mobil Corp
NYSE:XOM
|
US |
|
Pfizer Inc
NYSE:PFE
|
US |
|
Nike Inc
NYSE:NKE
|
US |
|
Visa Inc
NYSE:V
|
US |
|
Alibaba Group Holding Ltd
NYSE:BABA
|
CN |
|
JPMorgan Chase & Co
NYSE:JPM
|
US |
|
Coca-Cola Co
NYSE:KO
|
US |
|
Verizon Communications Inc
NYSE:VZ
|
US |
|
Chevron Corp
NYSE:CVX
|
US |
|
Walt Disney Co
NYSE:DIS
|
US |
|
PayPal Holdings Inc
NASDAQ:PYPL
|
US |
EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (6.4), the stock would be worth AU$37.63 (32% downside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 9.4 | AU$55.48 |
0%
|
| 3-Year Average | 6.4 | AU$37.63 |
-32%
|
| 5-Year Average | 6.2 | AU$36.56 |
-34%
|
| Industry Average | 12.5 | AU$74.13 |
+34%
|
| Country Average | 16.8 | AU$99.39 |
+79%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
AU$300.9B
|
/ |
Jan 2026
$22.3B
|
= |
|
|
AU$300.9B
|
/ |
Jun 2026
$25.7B
|
= |
|
|
AU$300.9B
|
/ |
Jun 2027
$23.8B
|
= |
|
|
AU$300.9B
|
/ |
Jun 2028
$23B
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| AU |
|
BHP Group Ltd
ASX:BHP
|
282.8B AUD | 9.4 | 19.4 | |
| AU |
|
Rio Tinto Ltd
ASX:RIO
|
280.1B AUD | 11.5 | 20 | |
| UK |
|
Rio Tinto PLC
LSE:RIO
|
120.2B GBP | 10.3 | 15.9 | |
| MX |
|
Grupo Mexico SAB de CV
BMV:GMEXICOB
|
1.6T MXN | 11.1 | 18.9 | |
| CH |
|
Glencore PLC
LSE:GLEN
|
64.6B GBP | 36.1 | 235.5 | |
| SA |
|
Saudi Arabian Mining Company SJSC
SAU:1211
|
248.9B SAR | 25.9 | 33.9 | |
| CN |
|
CMOC Group Ltd
SSE:603993
|
433B CNY | 10.1 | 21.3 | |
| UK |
|
Anglo American PLC
LSE:AAL
|
42.9B GBP | 16.2 | -15.2 | |
| CN |
C
|
China Molybdenum Co Ltd
OTC:CMCLF
|
52.8B USD | 8.4 | 17.9 | |
| ZA |
A
|
African Rainbow Minerals Ltd
JSE:ARI
|
46.7B ZAR | -77.3 | 36.2 | |
| IN |
|
Vedanta Ltd
NSE:VEDL
|
3T INR | 11.2 | 21.1 |
Market Distribution
| Min | 0 |
| 30th Percentile | 10.7 |
| Median | 16.8 |
| 70th Percentile | 24.5 |
| Max | 6 797.5 |
Other Multiples
BHP Group Ltd
Glance View
BHP Group Ltd., often perceived as a colossus in the world of mining, stands as a paragon of effective resource management and operational excellence. Originally rooted in Melbourne, this behemoth of a company has built an empire on the extraction and processing of essential raw materials. Its operations span the globe, with a portfolio primarily focusing on four pillars: iron ore, copper, coal, and petroleum. Each of these commodities serves critical roles in global industries—iron ore for steel production, copper for electrical systems, coal for energy, and petroleum for fuel and chemical products. BHP's extensive mining infrastructure and advanced technological integration enable it to efficiently extract and transport these materials to markets worldwide, capitalizing on scale, safety, and sustainability to enhance profitability. At the heart of BHP's financial engine lies its strategic emphasis on cost efficiency and expanding high-margin operations. The company systematically invests in innovation and development to optimize ore grades and extend the life of its mines, ensuring a steady stream of production that aligns with market demand. By hedging against the volatility typical of commodity markets through long-term contracts and judicious price management, BHP achieves a remarkable balance between risk and reward. Furthermore, the group's diversified portfolio mitigates exposure to downturns in any single commodity market. This approach not only fortifies its revenue streams but also positions BHP as a resilient entity amidst shifting global economic landscapes—a mining titan continually adapting to the minutes of time.